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What Is Universal Basic Income?
Universal basic income may be a government-guaranteed payment that every citizen receives. It is also called a citizen’s income, guaranteed least income, or basic income.
Universal basic income is a program where every citizen receives a flat monthly payment, regardless of whether they’re working and earning an income or not. Different programs outline who exactly gets the income. Some state that all citizens would get it regardless of what they make. At the same time, other programs may only give it to those who fall below the poverty line.
In 1967, Martin Luther King Jr. said a guaranteed income would abolish poverty. That means reducing income inequality as well.
Economist Milton Friedman proposed a negative income tax. The poor would receive a tax credit if their income fell below a small level. It would be equal to the tax payment for the families earning above the smallest level.
Pros of Universal Basic Income
Fighting Technological Unemployment
With advanced technology taking up more and more blue and white-collar jobs. UBI would act as a kind of security net for the many people that are going to be left jobless by the tech revolution.
Research shows that the longer you unemployed, the longer it takes to find employment. If the jobless had a small source of income to help them back on their feet. They could find new jobs and begin contributing to the economy sooner.
Those who suffer domestic abuse, women become trapped in violent situations. They don’t have the means to leave them. UBI would cause devising an offensive partner more straightforward from a financial point of view. At least, and would unleash the working potential of countless people who constrained, also by domestic violence.
Supporting Unpaid Care Workers
Those with wicked or differently-abled kin are often pressured to quit their employment. It is to care for them full-time. UBI would allow care-workers to support themselves. Encouraging care work within the house and relieving pressure on public services. That provides care to the sick and elderly.
Expanding the Middle Class
The economic growth of high-income countries is making the rich richer. But having very little effect on the working classes. The research of economists Emmanuel Suez and Thomas Piketty showed. ‘The bottom half of earners went from making 20 per cent of income in 1979 to 13 per cent in 2014.
The top 1 per cent, so, has gone from making 11 per cent to 20 per cent. The pie has gotten bigger, and the richest families have reaped bigger and bigger pieces from it’. UBI would help to balance this inequality and expand the ever-shrinking middle class.
Advocates for UBI believe that in some of the richest countries in the world, no one should be too poor to live. UBI would bring everyone’s income above the poverty level.
Eliminating the Need for Social Security
There exist countless governmental organizations responsible for helping those in poverty. Handing out unemployment benefits, food stamps, and subsidized housing. UBI would cut a country’s spending by eliminating these organizations.
Discouraging Low Wages
UBI would give employees enough security to possess bargaining power. As Annie Lowrey says, ‘why to take a crummy job for 7.25 an hour when you have a guaranteed 1,000 dollars a month to fall back on?’
Think of It as Monopoly
Most people think that jobs lead to financial wealth, but the reality is that having money leads to employment. Without the privilege of wealth, it is more difficult to build a life that makes landing a job easier. To get a job, you need to have a house with a shower.
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A set of appropriate interview clothes. Also, the funds to cover the cost of transport and food during the working day. Suppose you want to contribute to the economy on an even greater scale and start your own business. You’ll need even more money.
In the game Monopoly, everyone starts with a little bit of money. Without it, the game wouldn’t work, and no one would be able to become rich or successful. UBI is like Monopoly – everyone starts with a little bit of money and uses it to fuel a thriving economy.
Successful implementation of UBI would mean improvements in food security and stress. Also, mental health, physical health, housing, education, and employment.
Cons of Universal Basic Income
Motivation to Work
The biggest concern is that UBI would incite many workers to prevent working. If people aren’t working, there is less taxable income. But, people may choose to stop working for reasons that benefit society as a whole. Such as getting a better education or caring for a relative in need.
The cost of implementing UBI in the United States estimated to be about 3.9 trillion per year. The idea is that UBI would take the pressure off health services. Also, make social security institutions redundant. This is, even so, an enormous number for a government to budget for.
Some wonder if it is fair to give the same amount of money to billionaires as those born into poverty. Does Bill Gates need extra money each month? Some believe that a particular accumulation of wealth should show you’ve got out-grown UBI.
Is Money a Birthright?
Capitalist countries built on the ideological foundation that money is something we earn. UBI would completely change this. Some believe that community service should be a need for receiving UBI.
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The motive after most universal basic income schemes is excellent. That reduce widespread poverty and provide lifelong income security to all. But a UBI would likely fall far in need of eliminating poverty. At the same time, imposing high economic costs and ignoring future opportunities for work.